031513_IPCSimplot.pdf

Idaho Public Utilities Commission
Case No. IPC-E-13-02, Order No. 32754
March 15, 2013
Contact: Gene Fadness [phone], 890-2712
Website: www.puc.idaho.gov

Idaho Power seeks extension of Simplot power sales contract

Idaho Power Company is seeking to extend a power sales agreement with a cogeneration
facility at J.R. Simplot’s fertilizer plant near Pocatello. The Idaho Public Utilities Commission is
taking comments on the request through March 21.

The power facility generates 10 average megawatts of energy for Idaho Power’s customers.
The previous sales agreement expired March 1. Idaho Power’s application would grant interim
approval of a sales agreement while a permanent application is reviewed.

The interim contract is for two years at the commission’s published avoided-cost rates for projects 10
average megawatts or smaller. The small-power facility falls under the provisions of PURPA. The
Public Utility Regulatory Policies Act was passed by Congress in 1978 to encourage the
development of renewable energy technologies as alternatives to burning fossil fuels or the
construction of new power plants. PURPA requires that electric utilities offer to buy power
produced from qualifying small power producers or cogenerators. (Cogenerators produce
power as a byproduct of their manufacturing process.)

The rate to be paid small-power developers is to be equal to the cost the utility avoids if it
would have had to generate the power itself or purchase it from another source. The
commission must ensure the avoided-cost rate is reasonable for utility customers because 100
percent of the price utilities pay to qualifying producers is included in customer rates.

The proposed contract is non-levelized, which means the price escalates annually to more
accurately reflect the actual value of the energy generated. The avoided-cost rate is $52.28 per
megawatt-hour in 2013, $52.49 in 2014 and $55.91 in 2015. The rate is adjusted for light-load
and heavy-load hours as well as for light-load and heavy-load seasons.

The commission plans to handle this request in a modified procedure that uses written
comments rather than conducting a hearing, unless customer comments can demonstrate a
need for a public hearing. Comments are accepted through March 21 via e-mail by accessing
the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions
About a Case." Fill in the case number (IPC-E-13-02) and enter your comments. Comments can
also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to [phone].

A full text of the commission’s order, along with other documents related to this case, is
available on the commission’s Web site. Click on “File Room” and then on “Electric Cases” and
scroll down to the above case number.